Proposed revisions to the Market in Financial Instruments Directive (MiFID II) is giving market makers, many of whom use high frequency trading methods, mixed messages. This could hurt their ability to provide liquidity to European financial markets, especially if their remuneration is limited by lawmakers, writes Johannah Ladd.

European Union plans to clamp down on trading shares faster than the blink of an eye could damage market efficiency and reduce liquidity, a UK government-sponsored paper said, rejecting a key Brussels proposal to force traders to hold shares for longer.

Speculation on financial markets is contributing to higher and more volatile food prices, said MEPs in the European Parliament's Committee on Economic and Monetary Affairs, who voted yesterday (26 September) for a 500 millisecond break on ultra-fast computerised trades.

EU proposals to regulate high frequency trading under MiFID may well end up raising transaction costs for end-investors and pushing trading into the dark rather than making markets more transparent, argues Remco Lenterman.

Banks should be banned from giving outside brokers direct access to markets as part of a sweeping crackdown on computerised high-frequency trading, reads a European Parliament report to be presented to the Economic and monetary committee on 24 April.

The European Commission has proposed extending the Markets in Financial Instruments Directive (MiFID) to redress market abuse and volatile trades highlighted by the financial crisis. Experts warn that arbitrage is always around the corner.

An EU regulation aimed at making stocks trading more transparent and competitive has done the opposite and is penalising small investors to boot, according to the EuroInvestors trade body which represents small investors.

In response to the worst crisis in decades, the European Union has agreed on a series of rules and new watchdogs to regulate and supervise global financial markets. EurActiv offers an overview of the state of play.

Banks and broker dealers will suffer from a competitive disadvantage in member states that are lagging behind on MiFID implementation and now face major court cases, says Karel Lannoo in an interview with EurActiv. The researcher thinks that the new legislation is a 'major step forward for greater investor confidence'.

Karel Lannoo is Chief Executive Officer at the Centre for European Policy Studies (CEPS) and an expert on banking, financial markets and financial market regulation.

A recent International Monetary Fund (IMF) report finds that EU member states need to take action on putting in place cross-border investment rules if they want to reap the benefits of an integrated, competitive financial market in Europe.

In this ECMI Policy Brief, Karel Lannoo, Cheif Executive at the Centre for Europen Policy Studies (CEPS) argues that the implementation of the Markets in Financial Instruments directive (MiFID) will have a significant impact on the financial market data business.

Karel Lannoo, in a commentary written for the Centre of European Policy Studies (CEPS) think-tank, writes that although regulatory interference in financial services may appear costly, the overall benefits for consumers and the economy should not be underestimated.

J.P. Casey and K. Lannoo, from the European Capital Markets Institute (ECMI), explain the evolution of EU regulation of investment firms from the original Investment Services Directive (principles-based approach) to the MiFID implementing measures (rules-based approach).